Was Nixon’s Veto of Missouri Tax Cut Legislation Right?
JEFFERSON CITY, Mo. (KMOX) — All eyes will be on Missouri legislators in September. Lawmakers will consider whether to undo Gov. Jay Nixon’s veto of a bill that would have raised the sales tax and cut corporate and personal income taxes.
Dan Mehan, head of the Missouri Chamber of Commerce said he just can’t understand the governor’s opposition.
“This is an issue of competitiveness,” Mehan told KMOX’s Mark Reardon. “What this does is it takes the growth in general revenue and gives some of it back to taxpayers, small businesses and all businesses.”
Mehan said that means economic growth and jobs.
“Missouri taxes are relatively low, but if you look at trends around the Midwest, seven of the eight contiguous states are doing some form of a tax cut, some have already done it,” Mehan added.
But former state budget director under Governor Ashcroft Jim Moody, who is now with the Coalition for Missouri’s future, said that’s not the case.
“Somebody with half-a-million-dollar income, after five years you’re going to get a 12-thousand dollar tax break. How many people can you hire at 12-thousand dollars?” Moody argued. “You’re not going to.”
Nixon sent lawmakers a letter last month that said enacting the tax cuts could jeopardize Missouri’s AAA-credit rating.
The veto session is in about three weeks.
Dan Mehan, head of the Missouri Chamber of Commerce, discusses Governor Nixon’s veto of House Bill 235.
Jim Moody is with the Coalition for Missouri’s Future and he discusses the con side of Bill 235.